Why sole proprietorships and general partnerships offer no protection at all (continued).
There are some advantages to a sole proprietorship. First, the sole proprietorship is easy to establish and is subjected to fewer regulations. Second, the owner has complete control over the business, making it simple to discontinue. Third, because a sole proprietorship is not a corporation, it does not pay corporate taxes, making accounting easier.
In conclusion, the disadvantages of a sole proprietorship outweigh its advantages. The threat of unlimited liability, coupled with the prospect of greater risk as a business becomes more successful makes forming a corporation, LLC or LP all the more important.
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